Refinancing

Many people refinance their loans in order to save money on interest and pay their loan sooner.

If there are genuine savings to be made by moving to a different lender, refinancing is certainly a smart option, however it is very important that you understand all the costs involved in changing loans, and you also need to compare the features available with each loan. It's not just about the interest rate.

Costs to consider:

- Early exit fees. Some loans include an early exit fee which is payable if you leave your loan before a particular date (From July 2011 lenders are not allowed to charge exit fees on new loans. This rule only applies to loans settled after July 2011.)
- Some fixed rate loans include break fees which are payable if you leave your loan within the fixed term
- Application fees may be payable on the new loan
- Compare monthly fees.

Features to consider:

- Redraw facility
- Ability to make extra repayments
- Ability to pay fortnightly
- Internet banking.

Book a CFS Home Loan Health Check
It's hard to find the time to regularly check the market to compare your loan with new offers and work out whether you could save by refinancing. We can do it for you.

The CFS Home Loan Health Check reviews your loan against the market to identify genuine opportunities to save you money. We say genuine because the savings available need to be worthwhile even after you take in to account costs and fees.

We also consider the features and benefits associated with the loans to ensure refinancing does not leave you short of a specific loan feature you need.

Call CFS today on 03 9429 9775.